Ratio Analysis of Drb Hicom

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RATIO ANALYSIS (a) Background of the company. Include the details of the top management and board of directors of the company that you have chosen. You may also include the names of the top managers/directors and success stories of or anything unique or special about the company. (b) Perform the ratio analyses based on the followings a. Liquidity ratio – current ratio-CR, quick ratio-QR b. Activity ratio – inventory T/O-INV T/O, Avg collection period-ACP,APP c. Leverage/Debt ratio –debt ratio-DR, Times Interest Earned –TIE d. Profitability ratio – OPM, NPM, ROE, ROA, EPS (c) Perform a Trend analysis in a summary form. Make some critical comments on leverage and describe whether there is any relationship between leverage and profitability (d) Identify the problem areas on liquidity and activity of the company. Give solutions or recommendations for further improvement. You may give your critical view pertaining to the problems faced by the company (e) Comment on the overall performance of the company and its future outlook Company Overview DRB-HICOM Berhad (“DRB-HICOM) is one of Malaysia’s leading companies listed on the Main Market of Bursa Malaysia Securities Berhad, playing an integral role in the nation’s road to industrialisation. In year 2000, DRB-HICOM formerly known as Diversified Resources Berhad undertook the merger of four listed companies within its stable namely, DRB-HICOM, Gadek, (Malaysia) Berhad, Gadek Capital Berhad and HICOM Holdings Berhad (“HICOM”) with an aggregate market capitalization in excess of RM6.0 billion. HICOM had been instrumental in leading the nation’s drive towards industrialisation and among its major achievements was the development of the National Car Project. Meanwhile, DRB-HICOM was instrumental in the development of Malaysia’s first national motorcycle

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